Exploring Post Trade Security Settlement With A U.S. CBDC PDF Free Download, Exploring Post-trade Security Settlement With A U.S. Central Bank Digital Currency.
Exploring Post Trade Security Settlement With A U.S. CBDC PDF
The Traditional Business Models And Market Infrastructure Providers Being Challenged By Distributed Ledger Technology And Tokenized Assets Are Causing A Paradigm Shift In Financial Markets All Over The World.
Private And Public Institutions Are Still Investigating The Advantages And Implications Across Many Digital Asset Use Cases As The World Moves Closer To A Future Of Digital Assets. To Streamline Conventional Payment Networks And Provide More Transparency For Retail, Wholesale, And Cross-border Transactions, Digital Currencies Are Being Introduced.
The Securities Settlement Pilot, Formerly Known As Project Lithium, Was The First Effort To Investigate How Tokenized Securities And A Wholesale Central Bank Digital Currency (Cbdc) Could Operate Within The U.s. Settlement Infrastructure Using Distributed Ledger Technology. With Support From Accenture And Collaboration From The Digital Dollar Project (Ddp), The Paper Outlines Key Findings (Dlt).
Dtcc Joined The Ddp Earlier This Year To Introduce The Program’s First Pilot. It Is The First Time That Participants From The Private Sector Have Investigated Us Cbdc In Post-trade Infrastructure. To Further Understand Feasibility, Design Requirements, Functional Challenges, And Market Opportunities, Dtcc Designed And Built A Prototype To Settle Tokenized Securities Using Simulated Cbdc Tokens. Accenture Provided Support.
The Pilot Examined The Effects Of Using A Cbdc Issued By The United States In Dtccc’s Post-trade Services. The Cbdc Technology Was Tested By Dtcc And Ddp In A Research And Development Setting Without Affecting Production.
The Team Investigated The Use Of A Cbdc In Wholesale Securities Settlements And Designed And Developed A Cbdc Network That Builds Upon The Work Of Previous Initiatives Coordinated By A Range Of Market Participants, Including Private Sector Players And Central Banks.
According To The Paper’s Detailed Description, The Pilot Improved The Ddp’s Comprehension Of Cbdc, Outlined Network Connectivity And Design Considerations, Identified Potential Business Outcomes, And Laid Out Potential Opportunities For Further Investigation Of A Cbdc Settlement Use Case. Below Is A Summary Of The Main Outcomes:
Refined The Ddp’s Cbdc Champion Model Requirements To Support Post-trade Settlement In The United States Network Connectivity & Design Decisions: Design Considerations That Have Been Identified In Light Of The Implemented Logical Architecture Business Consequences: The Operational Advantages And Disadvantages Of A Potential Cbdc Settlement System Were Found.
The Pilot Exhibited How Industry Participants And Dtcc Could Use A Cbdc In The Context Of Securities Settlement. Additionally, It Helped Establish Future Areas Of Investigation For A U.s. Cbdc And Identified Crucial Questions, Such As:
Increased Business Value Measurement For Industry Participants Find The Effects On The Digital Ecosystem Examine The Requirements For Adopting An Ecosystem. Tech Requirements Should Be Refined.
A Digital Dollar Should Be Carefully Explored In Consultation With Key Stakeholders In Both The Public And Private Sectors Because The U.s. Dollar Is An Integral Part Of The U.s. And Global Economy.
The First Practical Examination Of The Use Of Cbdc Technology In U.s. Wholesale Financial Markets Via Direct Engagement With Market Participants Was This Pilot With Dtcc. The Pilot’s Findings Should Help Private Sector Participants And American Policymakers Understand The Benefits, Needs, And Implications Of This New Technological Paradigm.
November 30, 2022 In New York, London, Hong Kong, Singapore, And Sydney In Collaboration With The Digital Dollar Project (Ddp) And With Assistance From Accenture, The Depository Trust & Clearing Corporation (Dtcc), The Leading Post-trade Market Infrastructure For The Global Financial Services Sector, Today Released Its Newest Whitepaper, “Exploring Post-trade Security Settlement With A U.s. Central Bank Digital Currency.”
The Pilot (Previously Known As Project Lithium), The First Private Sector Effort To Investigate How Tokenized Securities And A Wholesale Central Bank Digital Currency (Cbdc) Could Function Within The U.s. Settlement Infrastructure Utilising Distributed Ledger Technology, Presents Key Findings In This Paper (Dlt). Leading Market Participants Such As Bank Of America, Citi, Nomura, Northern Trust, State Street, Virtu Financial, And Wells Fargo Participated In The Pilot.
A U.s. Cbdc Should Be Properly Investigated In Conjunction With Important Stakeholders From The Public And Business Sectors As A Viable Digital Substitute For Currency. Through Direct Interaction With Market Players, Dtcc’s Pilot With Ddp Evaluated The Usage Of A Simulated Cbdc And Dlt For Dvp Settlement In The U.s. Wholesale Markets, According To Jennifer Peve, Dtcc Managing Director, Head Of Strategy And Business Development. The Pilot’s Findings May Assist Market Players And American Policymakers Better Understand The Many Needs Associated With This New Technological And Monetary Paradigm.
In Order To Successfully Settle Tokenized Securities On Dtcc’s Digital Settlement Network Prototype Against Tokenized Dollars On A Simulated Cbdc Network Supplied By Accenture, The Dtcc Pilot Used Dlt. Through A Series Of Workshops, Pilot Participants Offered Feedback On The Ddp And Dtcc Pilot.
To Allow Safe, Robust, And Effective Security Settlement Using Cbdcs, The Design Incorporated An Architecture That Linked Two Different Asset Networks. In Order To Ensure That Assets Were Settled On Both Networks, Reduce Communication Dependencies Between Parties, And Eliminate Counterparty Risk At The Time Of Settlement, The Pilot Created Mechanisms For A Network Administrator To Resolve Transactional Issues While Otherwise Remaining In Observation Mode.
According To Jennifer Lassiter, Executive Director Of The Digital Dollar Project, “The Results From This Trial Provide As Essential Information To Influence Global Cbdc Developments And Dialogues That Are Fast Rising Across Industries.”
“Ddp Acknowledges Dtcc For Taking The Lead On This Pilot, And We Also Thank The Participants For Their Thoughtful Participation Throughout. The Development Of U.s. Markets Depends On Understanding How Cbdc Technology Affects This Crucial Component Of The Financial Market Infrastructure, And This Understanding Will Guide Future Cbdc Research And Experimentation Internationally.”
“Accenture Is Glad To Have Assisted Dtcc And Ddp In Exploring The Usefulness Of Digital Currency And Tokenization In The Development Of Our Capital Markets, “David Treat, Senior Managing Director And Co-lead Of The Global Metaverse At Accenture, Stated.
“The Varied Community Of Experts And Stakeholders In The Ddp, Together With The Knowledge, Leadership, And Creativity Of Dtcc, Is A Potent Mix That Will Help Shape The Influence That Digital Currency Will Have On The Evolution Of Financial Infrastructure.”
Dtcc Is The Leading Post-trade Market Infrastructure For The International Financial Services Sector And Has More Than 45 Years Of Expertise. Through Its Subsidiaries, Dtcc Processes Financial Transactions From 21 Sites Around The Globe, Automating, Centralising, And Standardising The Process To Reduce Risk, Boost Transparency, And Boost Efficiency For Thousands Of Broker/dealers, Custodial Banks, And Asset Managers. The Company, Which Is Industry Owned And Regulated, Makes Complicated Clearing, Settlement, Asset Servicing, Data Management, Data Reporting, And Information Services Across Asset Classes Simpler, Enhancing Market Security And Soundness. The Subsidiaries Of Dtcc Executed Securities Transactions Worth Close To Us $2.4 Quadrillion In 2021.
For Securities Issuance From 177 Nations And Territories With A Total Market Value Of $87.1 Trillion Usd, Its Repository Offers Custody And Asset Servicing. Through Locally Registered, Licenced, Or Permitted Trade Repositories, Dtcc’s Global Trade Repository Service Handles 16 Billion Communications Each Year. Visit Us At Or Connect With Us On Linkedin, Twitter, Youtube, Facebook, And Instagram For Additional Information.
